The Secret to Sustainability of the Global Tea Industry

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1 The Secret to Sustainability of the Global Tea Industry Presented by Joe Simrany, President, Tea Association of the USA, Inc. FAO Meeting New Delhi, India May 12-14, 2010

2 Secret to Sustainability Background The Global Tea Industry is poised for a period of unprecedented Growth However, we cannot take that growth for granted Purpose of this paper is to review the drivers & obstacles to growth & evaluate how to deal with each Actions should come from within the industry as opposed to being forced through third party initiatives

3 Drivers of Growth Health Benefits of Tea Tea as a Trendy Beverage Tea as a Natural Product Tea as a Fighter of Obesity Appeal of Specialty Tea

4 Potential Obstacles to Growth Concern About Pesticide Residues Importance of Food & Worker Safety Other Social Welfare Issues Concern for the Environment

5 Perception = Reality Allegations may not be based on fact, but. Re-examine operations to ensure that we are doing the right thing within the realm of reason Get creative seek outside funding Consequences of having to close an operation should help to emphasize the wisdom of support

6 Attention to Food Safety Use of Agro Chemicals Obligations of Tea Producers Obligations of Tea Consuming Countries Security of the workplace Storage & Transportation Shipping Need for Traceability

7 Establish a Universal Code of Conduct Global Harmonization may be an Impossible Dream A document of minimum Standards may be more Achievable Signatories would identify themselves as preferred suppliers Working Group of FAO Attendee would be an excellent starting Point

8 Create a non-profit organization to Monitor Compliance Possible expansion of the role of the ITC Another option is to form a new organization like the Coffee Industry did Role of this organization would be less of a policeman and more of a Facilitator, Communicator, and Coordinator Could diminish the need for outside certifying bodies

9 Possible Reexamination of the Traditional Auction System Progress is already being made in this area by India as they explore electronic versions Many small lots of homogeneous teas could be combined into larger categories to allow more time to optimize bids Specialty teas would continue to follow traditional procedures

10 Adoption of Creative Promotion Techniques The separation of countries as either Tea Producers or Tea Consumers is no longer appropriate as all are consumers Each country needs to apply creative lowcost promotion techniques to maximize consumption Shared marketing experiences are critical to expediting this process The entire Industry Benefits

11 Creation of Low Cost Programs to Improve the Quality of Life on Tea Estates Life on the Tea Estates should be a beautiful experience Many low cost initiatives can be implemented to introduce the concept of fun and involvement for both workers & management Tea Tourism should be expanded to provide more funding to the Estates to implement more programs

12 Promotion From Within Primary Goal of Estate Management is to produce quality tea Key to Achievement of this goal is to employ skilled, involved, happy workers A Policy of promotion from within for qualified workers could open up areas of opportunity that could conceivably see a field worker aspire to an administrative, health care, teaching position etc. This could help solve the long term retention problem

13 Meaningful Government Involvement New Laws could stifle innovation Involvement is still important Establishment of Tea Boards Support of Agricultural Extension Services Contributions to Infrastructure improvements Grants for Housing Subsidies for Food, Education & Medical Care

14

15 The Future of the Tea Industry is Very Promising! It is up to each of us to Ensure that it Reaches its Potential!

16 Thank You & Good Luck to All of US

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